I had a client who came to my open house yesterday who actually understood the current market conditions. So many people are afraid of listing now because the market is slow and prices are down slightly. What they fail to realize is that the conditions are perfect under certain conditions.
- You are considering trading up in real estate. This is the time you should be selling and buying your new home. If you wait you may get the additional 10% (used as an example percentage only) more for your $300,000.00 condo that you are selling but you will also be paying the 10% more for the $500,000.00 house you want to buy. You will gain $30,000.00 on your sale but pay an additional $50,000.00 on your purchase. Or worse yet, perhaps the 10% increase prices the home that you could have had out of reach.
- Buying investment property - what are you waiting for? There are some really good deals available now from modivated sellers. Ask your Real Estate professional to be sending you emails of the current listings. Just last week I heard of two competing offers - that only happens when the properties are priced right and don't wait for the best deals to make it to the MLS public site - they are already sold to a buyer who used the services of a Realtor to forward them the listings as soon as they are posted on the Realtor MLS site - 3 days before.
- First time homebuyers - this is your market. You really don't want to wait. There are a lot of buyers trading up who are very motivated to sell. Get pre-approval on your mortgage so that you know your budget and take your pick of properties available.
And of course, the icing, the thing that makes this time the right time, the current interest rates. One determining factor (in addition to the Prime Rate and the increase in bond yield) of determining the interest rates offered is supply and demand. The demand is down right now. I received an email from an associate of mine who is a broker for a major bank offering a 5 year term for 3.64% if your deal closes within 60 days. Another broker proved me with a quote of 3.65% for a 30 day close or 3.85% for a 120 day commitment. Variable rates are available at Prime minus .65% (Prime is currently 2.75%). It does not get any better. Anyone looking to purchase in the next 4 months would be wise to get pre-approved in order to take advantage of these great rates!!!
***Next Bank of Canada Meeting is Wednesday, September 8, 2010*** don't wait - call me and I will set up an appointment with a mortgage broker to secure your rate. You may regret it if you don't. For every 1% increase on $100,000.00 you are paying $1,000.00 more for every year of your term.
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